Verizon (NYSE, NASDAQ: VZ) has reorganized its operations into three parts: Media and Telematics, Network and Technology, and Customer and Product Operations. The company has hired former Ericsson CEO Hans Vestberg to run the Network and Technology group as executive vice president. Current Verizon executives Marni Walden will head the Media and Telematics group and John Stratton will lead Customer and Product Operations, both as executive vice presidents as well. All three will report to Verizon Chairman and CEO Lowell McAdam.
"This new structure is designed to accelerate our progress toward delivering the promise of the digital world to customers,” explained McAdam. "It will give us greater organizational agility to continue to lead the market with our wireless and fiber services, scale and expand our media and telematics businesses, and maintain the leadership in network reliability and new technology that is a Verizon trademark.”
As head of the Network and Technology operations, Vestberg will lead a U.S.-based team responsible for further development of Verizon's network infrastructure, including both wireless and fiber-optic network assets. The latter include Verizon's fiber to the home (FTTH) networks, global internet backbone, and submarine cable networks. The company says it has a fiber footprint in 45 of the top 50 markets in the U.S. Vestberg will begin his tenure from Sweden but is expected to move to the U.S. this spring.
The Media and Telematics arm will assume responsibility for Verizon's digital media and telematics businesses, including AOL and, assuming the deal consummates, Yahoo! Verizon expects the combination of AOL and Yahoo! to provide more than 1.3 billion digital media users and generate $7 billion in revenue. The telematics operations, which include connected car and fleet management businesses, have grown with the acquisitions of Hughes Telematics, Fleetmatics, and Telogis to serve customers in 30 countries.
The Customer and Product Operations group will oversee Verizon's established businesses, which include Verizon Wireless, Verizon Enterprise Solutions, Verizon Partner Solutions, Verizon Consumer Markets, and Verizon Business Markets. These businesses generate more than $120 billion in annual revenue and serve more than 120 million customers. Stratton will also lead operations and sales for the Internet of Things products and services, including smart communities.
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